Complete the accompanying table and answer the accompanying questions: a. At what level of the control variable are net benefits maximized? b. What is the relationship between marginal benefit and marginal cost at this level of the variable? Control variable Q Total benefits B(Q) Total cost C(Q) Net benefits N(Q) Marginal benefit MB(Q) Marginal cost MC(Q) Marginal Net benefits MNB(Q) 100 1200 950 210 60 101 1400 70 102 1590 80 103 1770 90 104 1940 100 105 2100 110 106 2250 120 107 2390 130 108 2520 140 109 2640 150 110 2750 160
Complete the accompanying table and answer the accompanying questions: a. At what level of the control variable are net benefits maximized? b. What is the relationship between marginal benefit and marginal cost at this level of the variable? Control variable Q Total benefits B(Q) Total cost C(Q) Net benefits N(Q) Marginal benefit MB(Q) Marginal cost MC(Q) Marginal Net benefits MNB(Q) 100 1200 950 210 60 101 1400 70 102 1590 80 103 1770 90 104 1940 100 105 2100 110 106 2250 120 107 2390 130 108 2520 140 109 2640 150 110 2750 160
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 11SCQ: The state of Colorado requires oil and gas companies who use fracking techniques to retune the land...
Related questions
Question
Complete the accompanying table and answer the accompanying questions:
a. At what level of the control variable are net benefits maximized?
b. What is the relationship between marginal benefit and marginal cost at this level of the variable?
Control variable Q | Total benefits B(Q) | Total cost C(Q) | Net benefits N(Q) | Marginal benefit MB(Q) | Marginal cost MC(Q) | Marginal Net benefits MNB(Q) |
100 | 1200 | 950 | 210 | 60 | ||
101 | 1400 | 70 | ||||
102 | 1590 | 80 | ||||
103 | 1770 | 90 | ||||
104 | 1940 | 100 | ||||
105 | 2100 | 110 | ||||
106 | 2250 | 120 | ||||
107 | 2390 | 130 | ||||
108 | 2520 | 140 | ||||
109 | 2640 | 150 | ||||
110 | 2750 | 160 |
Expert Solution
Step 1
In the table above, the control variable is "Q" or the level of production or consumption of a good or service. The total benefits (B), total cost (C), and net benefits (N) are calculated based on the level of the control variable Q.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax